Identify by number the accounting assumption, principle, or constraint that describes each situation below. Do not use a number more than once. a) Recognizes expenses based on contribution to revenues in the proper period b) Indicates that market value changes subsequent to purchase are not recorded in the amounts. (Do not use revenue recognition principle.) c) Ensures that all relevant financial information is reported. d) Rationale why plant assets are not reported at liquidation value. (Do not
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Chapter 2 Worldwide accounting diversity Chapter Outline I. Considerable differences exist across countries in the accounting treatment of many items. These differences can result in significantly different amounts being reported in the financial statements prepared by companies using different GAAP. II. A variety of factors influence a country’s accounting system. A. Legal system – in code law countries, accounting rules tend to be legislated; common law countries tend to have
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Comparison between U.S. GAAP and International Financial Reporting Standards May 2013 © 2013 Grant Thornton LLP All rights reserved U.S. member firm of Grant Thornton International Ltd Comparison between U.S. GAAP and International Financial Reporting Standards 2 Contents 1. Introduction .................................................................................................................................................. 6 International standards and the IASB .........
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g. Property, Plant and Equipment 4. Liabilities containing: a. Liabilities b. Asset Retirement and Environment Obligations c. Exit or Disposal Cost Obligations d. Deferred Revenue e. Commitments f. Guarantee g. Debt h. Distinguishing Liabilities from Equity 5. Equity would be within the next section 6. Revenue
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was appropriately expended for an expense as designated by the donor -Money was appropriately expended for an asset as designated by the donor -A donor restriction based on time was satisfied 5. Permanently restricted assets are those that may only be used for the reason designated by the donor. There is no time limit for when a permanently restricted asset may become unrestricted. 6. Private not-for-profit organizations report two types of expenses. The first type is program services
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Case 06-7: Crazy Computers Page 1 PROFESSOR’S DISCUSSION MATERIALS Objectives of the Case This case gives students an opportunity to evaluate revenue recognition issues regarding extended warranty contracts. Applicable Professional Pronouncements ASC 605-20, Revenue Recognition: Services (ASC 605-20) (FASB Technical Bulletin No. 90-1, Accounting for Separately Priced Extended Warranty and Product Maintenance Contracts (Technical Bulletin 90-1)) ASC 944, Financial Service — Insurance (ASC 944)
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in other countries like Canada. Current plans are to open 100 to 150 new stores in Canada by 2013. Along with the standard increase in sales and in RED card Rewards® (page 14, 28). The credit business had an increase in profit with total revenue of $1,604 million, gross receivables of $6,843 million and a decrease in expensed due to bad debt. Some reasons for this increase would be the 5% discount for almost every item purchased with the Target card. For the credit segment Target would like
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"Comparing IFRS to GAAP Paper" In what ways does the format of a statement of financial or position under IFRS often differ from a balance sheet presented under GAAP? The United States uses two main accounting systems. We have the GAAP(Generally Accepted Accounting Principles and we also have IFRS(International Financial Reporting Standards). These two accounting systems have differences that make them a bit different from each other. For example GAAP Balance sheets have Income statement,
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Leases ...........................................................................30 Income taxes..................................................................33 Provisions and contingencies ..........................................35 Revenue recognition.......................................................37 Share-based payments ...................................................39 Employee benefits other than share-based payments ......41 Earnings per share ..............................
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are given accounting recognition, and are inputs to the accounting system. Transactions usually involve a flow of resources. Examples: Every transaction will result in changes to an entity’s assets, liabilities or equity, and After each transaction is recorded, Transaction Analysis First step in the recording process Involves analysing the effects of transactions on the accounting equation: *Identify the items affected: *Determine effect: Note that Revenues and Expenses are treated as a subset
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